Paychex, Inc. · NASDAQ:PAYX
Paychex — Investor Presentation (December 2025)
17 slides from Paychex's investor presentation, December 2025
Slide 1: AI as a Catalyst for Growth and Opportunity
AI as a Catalyst for Growth and Opportunity December 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Agenda
• Well Positioned to Win in AI • Less Exposure to AI Workforce Risks • Seizing AI Opportunities • Takeaways
Slide 4: Pioneering a New Era of Intelligent Business Operations
Pioneering a New Era of Intelligent Business Operations Unlocking Revenue Growth and Efficiency Through AI Transformation • AI is embedded across our solutions and operations, transforming how we serve our customers • We make enterprise-grade AI technology accessible to all businesses, empowering th
Slide 5: AI is Expanding Paychex's Opportunity
AI is Expanding Paychex’s Opportunity Driving Revenue Growth and Efficiency Across the Enterprise Solution Go-To-Market Experience Innovation Augmentation Optimization Increase TAM and Accelerate growth with Scaled productivity strengthen our smarter, more efficient enables shift to competitive moat
Slide 6: Paychex is Well Positioned to Capitalize on the AI Opportunity
PAYCHEX AI COMPETITIVE MOAT Paychex is Well Positioned to Capitalize on the AI Opportunity Best Practices Paychex Advantage AI Deployment vs. AI Effectiveness: Strong, proven expertise in deploying AI LEADERSHIP Many companies deploy AI, but few solutions that deliver clear, quantifiable achieve mea
Slide 7: Strong, Proven History of AI Leadership That Drives Measurable Impact
PAYCHEX AI COMPETITIVE MOAT Strong, Proven History of AI Leadership That Drives Measurable Impact At the Forefront of AI Innovation AI Success Cases • >4 million questions answered by AI Assistants in the last year Strategic Impact Advanced • ~80% of client Flex AI Assistant Agents & AI Generative i
Slide 8: Unrivaled Proprietary Data Assets Powering AI Performance
PAYCHEX AI COMPETITIVE MOAT Unrivaled Proprietary Data Assets Powering AI Performance • We believe Paychex’s unrivaled data and data transformation create a powerful competitive moat to drive superior model performance to unlock deeper insights and enable smarter workforce management • Data-rich str
Slide 9: AI's Impact on the Workforce Still to be Determined – Historical Perspective
LESS EXPOSURE TO AI WORKFORCE RISKS AI’s Impact on the Workforce Still to be Determined – Historical Perspective Innovation Transforms Workforce Roles and Has Historically Supported Long-term Employment Growth 180,000 GENAI SMARTPHONE 160,000 / 5G INTERNET CLOUD 140,000 COMPUTING / AI / ML 120,000 C
Slide 10: Technology Disruption Can be a Catalyst for Employment
LESS EXPOSURE TO AI WORKFORCE RISKS Technology Disruption Can be a Catalyst for Employment AI Projected to Create Net 7% Increase in Jobs Over the next five years, the World Economic Forum projects that: + 170 million jobs will be created – 92 million jobs will be displaced 78 million net jobs 10
Slide 11: Composition of our Client Base
LESS EXPOSURE TO AI WORKFORCE RISKS Composition of our Client Base AI Impact Varies: Less AI Disruption Expected for Smaller, Service-Focused Enterprises >70% Employees work in Blue and Gray Most of our clients and their employees work at smaller businesses, where staff often wear multiple Collar in
Slide 12: Resilience in our Business Model
LESS EXPOSURE TO AI WORKFORCE RISKS Resilience in our Business Model Business Model has Less Exposure to Beyond SaaS: We Deliver Valuable Services That Potential AI-Driven Employment Risks AI Cannot Replace • Our revenue model is not purely PEPM-based. It has a • Paychex combines advanced technology
Slide 13: Technology Disruption Can be a Catalyst for Entrepreneurship
LESS EXPOSURE TO AI WORKFORCE RISKS Technology Disruption Can be a Catalyst for Entrepreneurship AI Could Boost New Business Formation • Periods of higher unemployment historically correlate with increased new business formation • Data indicates up to a 2X uplift in new business starts during such p
Slide 14: Powering Product Innovation to Drive Insights, Retention, and Growth
SEIZING AI OPPORTUNITIES Powering Product Innovation to Drive Insights, Retention, and Growth Integrating AI into our 3 purpose-built HCM suites empowers organizations to optimize their human capital strategies, improve employee experiences, and drive better business outcomes through intelligent aut
Slide 15: Actively Monetizing AI to Capture the Tangible Value We're Delivering
SEIZING AI OPPORTUNITIES Actively Monetizing AI to Capture the Tangible Value We’re Delivering Enhance Client Experience to Launch New AI-enabled Solutions Improve Retention • Develop and directly monetize advanced AI • Deploy AI-powered virtual assistants for solutions within HCM platforms seamless
Slide 16: AI is a Net Positive for Paychex
AI is a Net Positive for Paychex Opportunity to Fuel Growth, Drive Efficiency and Enhance Client Value Paychex’s Differentiators Expected to Create a Sustainable Advantage in the AI Era The most comprehensive, flexible and innovative Comprehensive HCM solutions that drive insights and efficiency HCM
Slide 17: Takeaways
• Paychex’s innovative HCM solutions, unrivaled data, and deep HR expertise we believe position us to win in the AI era • Less exposure to AI workforce risks with our business model and client base • Infusing AI enterprise-wide to drive revenue, efficiency and client retention • Reinventing the HCM